Australia Buyers charged $2000 fee to see Sydney blocks of land as prices soar
Real estate prices in Australia are surging. But experts say Seoul's housing market makes Australia's look tame
If the rate of Australian home price rises is bringing a tear to your eye, you're unlikely to find much sympathy from South Koreans, who are trying to buy into one of the hottest property markets in the world.Seoul's property market is on a tear. Apartment prices in the metropolis of nearly 10 million people rose by an extraordinary 22 per cent in 2020, outstripping all other cities in Asia.
Sydney's property market is so overheated prospective buyers are paying $2,000 fees just to view blocks of land that are 84km from the city centre.
Developers Lendlease and Mirvac are both selling house and land packages, from $800,000, on the city's south-western outskirts.
And competition is fierce.
While expensive, basic houses in new, master-planned suburbs are marginally more affordable than Sydney's record $1.147million median house price, which increased by 11.2 per cent during the first four months of 2021, CoreLogic data showed.
But many of these outer Sydney house and land packages are pricier than Melbourne's mid-point house price of $869,676.
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Lendlease is selling new houses at Wilton, 84km south-west of the city, for between $790,000 and $1.2million, in an area that until 2013 was being seriously considered as the site of Sydney's second airport.
Like many master-planned districts, the new suburb of Bingara Gorge comes with a fake lake.
Lendlease's Kings Central development at Werrington near Penrith, 50km west of Sydney, received 2,000 enquiries before the first weekend opening in March, with house and land packages available for $720,000 to $950,000.
Interest in both projects is so strong prospective buyers have to pay a $2,000 fee just to jump the queue to see available blocks, which is fully refunded if they don't end up signing a purchasing contract.
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The federal budget brings a series of incremental measures framed around supporting home ownership. The focus on home ownership reflects declining home ownership rates - projected to plummet in coming years.The government's approach over the last few years has been to focus on enabling banks to lend to people who haven't been able save a home loan deposit, and this Budget continues that focus.The First Home Loan Deposit Scheme is continuing - rebranded as the New Home Guarantee - supporting 10,000 eligible recipients to purchase a first home.
Ben Christie, Lendlease's head of residential property, said buyers were particularly interested in brand-new homes that didn't need to be renovated or fixed.
'We've been experiencing strong demand for our stock,' he told Daily Mail Australia.
'These numbers indicate confidence in both the Australian housing market, and our turnkey product, which, being a fully completed home, is remarkably appealing for many customers.'
Maggie Xu, from the Byton Realty Group, said the demand for house and land packages at Menangle Park, near Campbelltown, was outstripping the availability of blocks.
'I don't have any available stocks right now,' she told Daily Mail Australia.
'We're all waiting for the land developer to release the land.'
Prospective buyers at Mirvac's The Village development at Menangle have to pay a refundable $1,000 fee just to inspect a plot of land.
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But a Mirvac spokeswoman said the refundable payment was common practice for new housing developments.
'Prospective buyers pay a $1,000 reserve fee to secure their appointment to purchase on land release days,' she told Daily Mail Australia.
Those wanting to buy a plot on the Menangle Road site have to fill out a form to request an appointment on the realestate.com.au website.
The land along the Nepean River is also near two train stations.
In Sydney, there are still more prospective buyers than sellers with an ME Bank survey showing 38 per cent of respondents were planning to buy during the next compared with 13 per cent who intended to sell.
First-home buyers are still keen to get into the property market despite the hurdles.
'Although overall sentiment is lower among first home buyers, our findings show they are still the eager to buy property over the next year,' the ME report said.
The ME Quarterly Property Sentiment Report surveyed 1,000 Australians about the property market, including 570 owner-occupiers, 251 investors and 268 first-home buyers.
The Federal Government has also extended the HomeBuilder program until April 2023 where property owners are given $15,000 subsidies to build a house worth up to $750,000.
Everybody's Home spokeswoman Kate Colvin said social housing would have been a better investment in the federal Budget, arguing that soaring house prices were causing more homelessness.
'Escalating housing prices are pushing more and more people into homelessness, including women and children escaping family violence, young people who can’t stay at home and older people on low incomes, especially women,' she said.
Houses for sale: What $1 million will get you around Australia .
Looking to buy a home? Here's what $1 million will buy you in each state and territory — both in our cities and regions.Here's what $1 million will get you in every state and territory.